In light of the prevailing economic conditions, financial uncertainty and mounting costs, local authorities are reassessing their risk management strategies.
With the aim of mitigating budgetary strains, many local authorities across the UK are scrutinising their insurance portfolios, opting to increase policy deductibles as a countermeasure against escalating premium expenses.
However, this shift towards greater self-insurance comes with risks and necessitates a nuanced understanding of risk dynamics and claims management processes.
Challenging landscape
The current landscape for local authorities is characterised by a myriad of financial challenges and structural transformations.
Significant administrative changes, such as the recent division of Cumbria into Cumberland and Westmorland & Furness, alongside the emergence of new unitary authorities like Somerset’s single council, underscore a broader trend towards consolidation aimed at achieving economies of scale.
Despite these structural realignments, financial challenges persist, with several councils teetering on the brink of insolvency and necessitating increased support from central government.
“The current landscape for local…
